Hayden Corporation uses the calendar year as its tax year. It purchases and places into service $1.5 million of property during 2019 to use in its business:

Read the requirements

a. What is Hayden's total depreciation deduction for 2019 if Hayden elects out of bonus depreciation and does not claim Sec. 179 expensing? (Use MACRS rates to three decimal places, X.XXX%. Round the MACRS depreciation to the nearest dollar.)

	2019 Depreciation
Office Furniture
Office Machinery
Building
Total 2019 depreciation

More Info

	Placed into service	Cost	Recovery Period
Apartment building*	May 1	$370,000	27.5 years
Office furniture	June 23	$680,000	7 years
Office machinery	October 15	$450,000	5 years
* $105,000 of the cost pertains to the land on which the apartment building is located.

Reference

General Depreciation

System-MACRS

Personal Property Placed in Service After 12/31/86

Applicable Convention: Half-Year

Applicable Depreciation Method: 200 or 150 Percent Declining Balance Switching to Straight Line

Recovery period and Depreciation Rates

Recovery Year	3-Year	5-Year	7-Year	10-Year	15-Year	20-Year
Year 1	33.33	20.00	14.29	10.00	5.00	3.750
Year 2	44.45	32.00	24.49	18.00	9.50	7.219
Year 3	14.81	19.20	17.49	14.40	8.55	6.677
Year 4	7.41	11.52	12.49	11.52	7.70	6.177
Year 5		11.52	8.93	9.22	6.93	5.713
Year 6		5.76	8.92	7.37	6.23	5.285
Year 7			8.93	6.55	5.90	4.888
Year 8			4.46	6.55	5.90	4.522
Year 9				6.56	5.91	4.462
Year 10				6.55	5.90	4.461
Year 11				3.28	5.91	4.462
Year 12					5.90	4.461
Year 13					5.91	4.462
Year 14					5.90	4.461
Year 15					5.91	4.462
Year 16					2.95	4.461
Year 17						4.462
Year 18						4.461
Year 19						4.462
Year 20						4.461
Year 21						2.231